Questions on Keda's SAP Implementation

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Keda's SAP Implementation
Keda's SAP Implementation
Q1. ERP projects are expensive and risky. Why did Keda decide to embark on an ERP?
Essential case facts Although enterprise resource planning (ERP) projects are considered to be a risky investment for any organization, Keda had quite a number of reasons on why it decided to embark on ERP. The introduction of the Keda's silo-based model, as a way of encouraging a decentralized decision-making process, was actually affecting the performance of the Keda business. This was mainly due to the duplication of the identical processing tasks from different business units. Lack of integration prevented the Keda's leaders from making strategic decisions when it mattered. For instance, when leaders were supposed to decide on whether to compete for orders for the polishing machines in foreign markets, Keda failed to assess the cost and the profitability involved. In order to remain ahead of competition in product innovation, Keda had to continue engaging in the improvement of product development and management operations. Another factor that prompted Keda to embark in ERP was the pressure from the Chinese government agencies. The Chinese government was encouraging local innovation in order to catch up with foreign firms. There were numerous campaigns that were aimed at promoting the introduction of computerization in corporations so as to boost innovation and product development. Before the introduction of the ERP, pricing of

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